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The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the New York Times, where he serves as the foreign affairs columnist. He is the author of three best selling books. He lives in Bethesda, Maryland. 2005

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Page 1: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

The World is Flat

A Brief History of the Twenty-First Century

By Thomas L Friedman

Friedman has won the Pulitzer Prize three times for his work at the New York Times, where he serves as the foreign affairs columnist. He is the author of three best selling books. He lives in Bethesda, Maryland.

2005

Page 2: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

Thomas Friedman “While visiting in Bangalore, India someone commented that the playing field is being flattened . . . My God, he’s telling me that world is flat!. . . The global competitive playing field was being leveled. The world was being flattened.”

Page 3: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

The world is flat

Flattening of the world means that we are now connecting all the knowledge centers of the world together into a single global network, which if politics and terrorism do not get in the way – could usher in an amazing era of prosperity and innovation.

Page 4: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

The Three Eras of Globalization1492 – 1820 Globalization 1.0World shrank from Size large to size medium

Exploration and colonization drive successCountries think globally to thrive

1820 – 2000 Globalization 2.0World shrank from size medium to size small.

Collaboration between international companiesCompanies must think globally to surviveFirst half falling transportation cost and second half falling telecom costs.

2000 – Present Globalization 3.0World shrank from size small to size tiny.

Individuals and small groups globalizeDriven by diverse group of all nationalities

Page 5: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

Everyday ExamplesJet Blue Reservation System

Retirees and housewives take airplane reservations from their homes

McDonald’s Call CenterDrive-thru customers across the country give their order to a worker in Colorado Springs

Indian Technicians and EngineersRead X-rays, write software, provide administrative support to US companies from Bangalore

Chinese Workers and TechniciansJapanese speaking Chinese workers provide backroom support to American and Japanese companies

Page 6: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

The Ten Forces That flattened The World

Page 7: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

The 10 World Flatteners11/9/1989: Berlin Wall came down

Worldwide balance of power shifted to free marketsEach outbreak of freedom stimulated another outbreak

8/9/1995: Netscape IPOSparked the dot com boom and over-investment in fiber optic cable (connected the world)Dot com bust made cost of using fiber optic cable virtually freeFirst commercial browser, invigorated internet use

Workflow Software DevelopedSoftware and standards developed that allow people to work togetherCreated a global platform that enabled collaboration

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Page 8: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

The 10 World FlattenersOpen-Sourcing

Self-organizing collaborative communitiesFree code written by individuals and shared openlyPeer review provides rewarding gratification

Out-SourcingAny service, call center, business support operation, or knowledge work that can be digitized can be sourced globallyOpportunity to seek cheapest, smartest, most efficient providersInvigorated by Y2K computer date crisis (India)

Off-ShoringCompanies move entire factory or operation offshore to foreign countrySame product produces in same way with cheaper labor, lower taxes, etc.Invigorated by China joining the World Trade Organization (Dec 2001)Zx

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Page 9: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

The 10 World FlattenersSupply-Chaining

Wal-Mart pioneered global supply chain efficiencyWal-Mart trucks deliver products to stores, pick up goods from manufacturer on return to distribution centerAn item is purchased in Wichita, KS and another one is instantly produced in BeijingPrediction of hurricane causes specialized products to be shipped to affected stores (Pop Tarts, toys, beer)

In-SourcingLogistics giants take control of customer supply chainsUPS provides internal logistics support for other companiesToshiba laptops sent directly to UPS where a UPS employee repairs it and return ships to customer

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7

Page 10: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

The World is FlatFlatteners #7 & #8Thomas Friedman

Page 11: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

Flattener #7 – Supply Chaining

Wal-Mart Prophet?

Page 12: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

Flattener Key Points

Resourcefulness versus opportunityBusinesses in Difficult situations or insecure in the marketplace will innovate and educate the industry

Small efficiencies via technologyEnhanced communication, leads to identification of more instances to cut costs

Smart products and meta data MicrochipSmart products

RFID tags Streamline their supply chain

Page 13: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

What are the implications for the US economy and position in the world?

Adoption is a necessityResistance is futile. A place in the business world is solidified by adoption and innovation.

Catch-22, Hegemony, Tiny gains  Demand models, anticipation techniques and trend analysis makes meta data key in highly competitive markets

Page 14: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

Wal-Mart Profit.

Page 15: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

Flattener #8: UPS: In-Sourcing

Page 16: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

Example #1: UPS fixes laptops for companies to speed up service. 3 day turn-around, instead of week (s) for product repairs

Point 1 - UPS is not only shipping parcels, but also providing smart business solutions

Page 17: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

Example #2: Take orders from Nike.com, fill the order from a warehouse staffed and operated by UPS and ship with UPS.

Page 18: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

Point 2

UPS makes big companies act small + small companies act bigIf you are a seller on EBay, the buyer pays through PayPal, you print UPS label through PayPal and tracking number is emailed to the customer so they can track online and know when it’s being delivered

Page 19: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

Point 3UPS is creating enabling platforms for anyone to take their business global.Provides funds for small businesses for computers, scales, printers to help grow your businessProvides banking solutions for businesses

Page 20: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

Point 4UPS makes delivery super efficient & super fast, and does this in high volumes.Figured out a way to track packages more efficiently. Allow customers to track their own packages online.Coding system to track packages - saves money and speeds up delivery delivery.

Lowered price from $2+ to 5 cents

Page 21: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

Point 5

UPS is now basically an extension of departments within other companiesUPS tracks weather and geopolitical disturbances to make sure they’re prepared for that days business.2% of global GDP is being transferred through UPS at any given moment.Largest user of wireless technology in the world. Cell Phones/DIADs (Driver Delivery Information Acquisition Devices)UPS Companies   UPS Air Cargo  UPS Capital Corporation  UPS Consulting  UPS Mail Innovations  Mail Boxes Etc., Inc.  Motor Cargo, A UPS Company  Overnite, A UPS Company  UPS Professional Services  UPS Supply Chain Solutions

Page 22: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

And Flattening Capabilities…..

Page 23: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

The 10 World Flatteners

InformingSearch engines (Google, Yahoo!, etc) provide universal access to informationIndividuals empowered to find information

SteroidsWireless, VoIP, file sharing that enhance the collaboration toolsDigital, mobile, virtual and personal technologies explode

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Page 24: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

The Triple Convergence

Vertical (command and control) value-creation model

Horizontal (connect and collaborate) value-creation model

All 10 flatteners converged in 2000 and worked together to create the flat world

Horizontalization – Emergence of management practicesand infrastructure to boost productivity

India, China, and former Soviet Empire are joining the Flat world (300 million people)

Page 25: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

The Quiet Crisis

Friedman argues that the US is in a “quiet crisis” caused by 3 issues

The Numbers Gap• US is no longer producing adequate number of educated

workers and engineers• India and China overshadow US demographically

The Ambition Gap• Americans believe they are “entitled” to certain jobs• Some companies believe productivity higher in other

countries

The Education Gap• US education system is not preparing young people for

new types of work• Funding levels for education are inadequate

Page 26: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

Impact on Jobs

Three types of jobs in current marketFungible Jobs

• Repetitive and skill-based work• Easily digitized and not tied to a particular location• Easily outsourced

Anchored Jobs• Must be performed in a particular location

Value-add Jobs• Require specialized skills and knowledge• Knowledge must be across a number of disciplines and

deepThe individual worker is responsible for managinghis or her own career, risks, and economic security

Page 27: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

Becoming an “Untouchable”

Four types of workers in current marketSpecial Workers

• Special people like sports stars, movie actors, etc.

Specialized Workers• Work cannot be outsourced• Skills in high demand and not fungible

Anchored Workers• Tied to a specific location

Really Adaptable Workers• Constantly acquire new skills, knowledge, expertise• Look for unique and creative components of job

Untouchables are people whose jobs cannot be outsourced, digitized, or automated

Page 28: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

Help Wanted Ads in a Flat WorldGreat Collaborators and Orchestrators

Collaborating within and between companiesManagers who can work in 24/7 supply chains

Great SynthesizersPutting disparate and unusual things togetherExample: Search engines require mathematicians and marketing experts

Great ExplainersAbility to explain complex concepts with simplicity

Great LeveragersOptimizing the interface between people and machines

Page 29: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

Help Wanted Ads in a Flat WorldThe Great Adapters

Employees must be adaptable and versatile• Specialists have deep skills and narrow scope• Generalists have shallow skills and broad scope• Versatilists apply depth of skill to widening scope

through constant learning and growing

The Green PeopleIndustry of creating renewable energies and environmentally sustainable systems will growThree-billion people in China, India, and former Soviet Empire are joining the flat-world – will create more demand for energy and products

The Great LocalizersLocal businesses will still drive majority of jobsSuccessful people will understand global infrastructure and adapt to local needs and demands

Page 30: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

Taking Advantage of a Flat WorldUtilize information resources

AIAA Electronic Library, other internet sourcesUtilize international network

Colleagues at Universities, industry partnersInternational members at AIAA conferencesLook for opportunities to learn from and collaborate with others

Become Really AdaptableNever stop learning

• Participate in continuing education events• Conduct research, write a paper for AIAA Journal or

ConferenceBuild a global network

• Participate in AIAA conferences, section meetings, etc.• Become a member on an AIAA Technical Committee• Find a mentor

Take control of your own career

Page 31: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

The Quiet Crisis40% of the 18,146 NASA employees are age 50 or older

NASA employees over 60 out number those under 30 by a ratio of 3:1

The National Commission on Mathematics and Science Teaching for the Twenty-first Century found that 2/3’s of the nation’s mathematics and Science teaching force will retire by 2010

Page 32: The World is Flat A Brief History of the Twenty-First Century By Thomas L Friedman Friedman has won the Pulitzer Prize three times for his work at the

“When they send jobs abroad, they not only save 75% on wages, they get a 100% increase in productivity.”

“Young Chinese, Indians, and Poles are not racing us to the bottom. They are racing us to the top.”

“In China today, Bill Gates is Britney Spears. In America today, Britney Spears is Britney Spears – and that is our problem.”


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